Canara Bank Vs Yesu (DRT Chennai)
The matter before the Debt Recovery Tribunal (DRT), Chennai arose from an Original Application filed by the applicant bank on 4 March 2020 under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 seeking recovery of ₹25,40,017 in relation to an overdraft facility. The bank sought recovery of the outstanding amount together with further interest from the date of application until realization, along with costs.
According to the bank, the defendant, who was engaged in the business of laying granite slabs and modular kitchens, had approached the bank for financial assistance. The defendant requested an overdraft facility of ₹15,00,000 under the CGTMSE scheme for loans to Micro and Small Enterprises. The request was sanctioned on 14 January 2015 through a sanction memorandum, and the facility was made available under Loan Account No. 3411261000004, valid until 15 January 2016.
In connection with the sanctioned facility, the defendant executed several loan documents in favour of the bank on 14 January 2015. These included a promissory note for ₹15,00,000 and a cash credit agreement. The borrower agreed to repay the overdraft facility and service the interest as it became due, with interest fixed at 11.20 percent per annum.
